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Economic Prospects Appear Strong, National Focus on High Value-Added Activities
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This study explores the macroeconomic and industry outlook for the Czech Republic, with the industries covered including automotive, aerospace, and nanotechnology and materials. The Czech Republic’s gross domestic product (GDP) growth rate is expected to marginally decline over the next five years. However, the country’s growth rate can still be considered robust, with the Czech Republic continuing to register growth higher than the European Union (EU) average. Apart from robust GDP growth, a sound fiscal position, a low unemployment rate, and a positive trade balance are some of other factors driving the country’s strong economic prospects. The present national focus is on attracting more high-value added projects, with manufacturing firms, R&D centers, and business support service centers benefitting from tax and grant related incentives. The country is driving initiatives to support greater digitization across the economy, through initiatives such as Digital Czech Republic v. 2.0, the updated state policy on electronic communications, and Industry 4.0. As part of Digital Czech Republic v.2.0, the country has formulated the National Plan for the Development of Next Generation Networks (NGNs), with public aid extended for construction activities in areas that would otherwise be economically unattractive. Industry 4.0 should help in the realization of greater digitization and automation across the Czech industry, with this government initiative targeted an improved business and social environment. While the automotive and aerospace industries are well-established industries, the nanotechnology and materials industry is a developing one. The government has formulated the National Action Plan for Clean Mobility to help drive alternative fuel sales as well as the development of recharging/ refueling stations, with the government especially focused on driving electric vehicle sales and recharging infrastructure. Key Questions Answered:1. What is Czech Republic's growth outlook, and what are the key growth drivers and restraints?2. How are inflation and interest rates expected to evolve?3. What is the outlook for wages?4. What are the FDI target sectors, and what incentives are made available to foreign investors?5. What are the targets and implications of the National Plan for the Development of NGNs?6. What are the focal areas under Industry 4.0?7. How are motor vehicle production and sales expected to evolve?8. What are the targets and implications of the National Action Plan for Clean Mobility?9. How is the Czech Republic participating in Clean Sky 2 and what are the implications of the same?10. What are the key growth opportunities for investors?
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